Type of waste in service Industry:

Waste of Over-production

Processing too soon or too much than required
• Information sent automatically even when not required
• Printing documents before they are required
• Processing items before they are required by the next person in the process
Waste of Defects Errors, mistakes and rework
• Rejections in sourcing applications
• Incorrect data entry
• Incorrect name printed on a credit card
• Surgical errors
Waste of Inventory
Holding inventory (material and information) more than required
• Files and documents awaiting to be processed
• Excess promotional material sent to the market
• Overstocked medicines in a hospital
• More servers than required
Waste of Over-Processing
Processing more than required wherein a simple approach would have done
• Too much paperwork for a mortgage loan
• Same data required in number of places in an application form
• Follow-ups and costs associated with coordination
• Too many approvals
• Multiple MIS reports
Waste of Transportation Movement of items more than required resulting in wasted efforts and energy and adding to cost
• Movement of files and documents from one location to another
• Excessive e-mail attachments
• Multiple hand-offs
Waste of Waiting Employees and customers waiting •
Customers waiting to be served by a contact center
• Queue in a grocery store
• Patients waiting for a doctor at a clinic
• System downtime
Waste of Motion Movement of people that does not add value
• Looking for data and information
• Looking for surgical instruments
• Movement of people to and fro from filing, fax and Xerox machines
Waste of Un-utilized People
Employees not leveraged to their own potential
• Limited authority and responsibility
• Managers common
• Person put on a wrong job